Overpaying For Mobile

Eric Silvka posted an article today talking about how US carriers are gouging their mobile customers with their upgrade programs, then concludes with the following paragraph:

In all cases, customers would seem to be able to save some money by purchasing a contract-free phone upfront for $650 and then reselling it on their own terms whenever they wish to upgrade, almost certainly saving hundreds of dollars in the process.

You think this is bad? You should see what Canadian wireless carriers have been getting away with for years[1] — the CRTC is finally reigning them in this December, though.


  1. And keep in mind, those prices are on 3-year terms. I bought my iPhone 3G on a 3-year term and still paid $199 for it. I actually called my service provider — Fido and asked why I was paying the same subsidy as Americans who are on 2-year terms. I was told that Apple mandated those contract lengths. So I called Apple, they told me my carrier was a liar. Armed with that information I called Fido back and told them what Apple said to me. Then I was informed that it was, in fact, Fido themselves who set the contract lengths. When I recovered from the shock I asked for the number to the corporate headquarters so I could ask someone about why 3-year terms were necessary — the CSRs have no access to any such number and it’s not on their website, just an email address. I took it upon myself to email them daily for about two months… no reply. I gave up. With 6 months left on my contract I lined up on launch day for a brand new iPhone 4S (that’s right my early upgrade from my iPhone 3G was a 4S). After signing my contract and coming home I got my confirmation email. Turns out I did not extend my contract to 3 years, I extended it by 3 years! Meaning my contract is up in April of 2015. 2015! I signed a 3.5-year contract to get an iPhone 4S 6 months early. Absolutely incredible.  ↩

Making Life Better

Sarah Hampson recently castigated Apple for subtly insinuating that “iPhones [are] the meaning of life” in it’s latest TV spots, Our Signature and Designed By Apple. Before making her ‘meaning of life’ and hubris claims Hampson quotes this portion of the Designed By Apple ad:

Who will it help?

Will it make life better?

Does it deserve to exist?

We spend a lot of time on a few great things until every idea we touch enhances each life it touches.

Now The Macalope already had his mythical way with this piece, but I just wanted to add an additional comment about this article and these commercials.

Apple does strive to make my life better through technology. Not to infiltrate, but to enhance. If I let technology get in the way of my life that’s no more Apple’s fault than it’s beer’s fault someone becomes an alcoholic. I need to own that part.

But my Apple computers let me connect with family and friends via the internet on a platform that never crashes and doesn’t pester me to update constantly. My Airport wireless router allows me to do so wirelessly, without worrying about where the nearest ethernet jack is. My Apple TV lets me wind down with my favourite TV programs on demand, and after that program is over my Photo Stream screensaver kicks in and shows me photo after photo of my infant son. Dozens of times my wife and I will just sit and reminisce over our family photos until the Apple TV turns itself off. My iPad enables me to play games with my wife and quickly plan and print set lists for when I’m invited to lead worship for a church or youth group. And my iPhone — probably my favourite of the bunch. Not just for quick information or interactive maps-in-my-pocket as the Macalope suggests, but because I know I have a decent camera (photo and 1080p HD video) in my pocket at all times, which lets me capture moments like this video of my son giggling with his mom on film and keep them forever.

Apple is constantly trying to make technology more transparent. To get it out of the way and allow what it can do, not what it is to shine through. If that’s not making one’s life better, I honestly don’t know what is.

Market Fundamentals

Dmitry Fadeyev:

If this is the view of the market that Microsoft subscribe[s] to, then Windows 8 is the answer to that...It’s an OS that assumes that most computing will be done on devices that resemble powerful tablets with detachable keyboards, not on the laptops and the desktops of today. It’s an OS that tries to serve everyone at once, to cover all use cases and all markets....

But this only holds if the original premise is correct, that the tablet is the evolution of the laptop, and I just don’t think that’s right. Where the division lies is not a[t] the desktop and the mobile level, or between the laptop and the tablet, but between professional use (i.e. content creation), and light/entertainment use (i.e content consumption). While tablets are not necessarily used purely for content consumption, their limitations (small screen size and lack of a hardware keyboard) mean that this will always be their main use.

This is what Apple has demonstrated an uncanny understanding of since 2007, and it's why they're making money hand over fist.

Quality Domination

MG Siegler:

Over time, I believe we'll see a move towards a few Android devices dominating the market — things will start to look more like the iOS ecosystem which favors quality and experience over a large number of choices.

I don't disagree with Siegler often. But this is one of those times. There's a huge market for crappy computers in the Windows space. Almost 20 years since Windows 95 took the world by storm. As much as people want a good computer, they want a cheap computer more. Only when there is a clear and compelling reason to pay more will anyone do so. And software updates aren't it. Most folks I know (who have iPhones or Androids) don't update their OS, or even know that there is a new version. I believe cheap, crappy Android hardware will continue to exist right alongside great Android hardware.

Galaxy SIII's Monster Launch Numbers

Trevor Mogg on Samsung's Galaxy SIII selling 10 million units in the two months since it's launch:

With the S3 having quickly established itself as a handset to be reckoned with, the attention is now turning to Samsung’s main rival, Apple, to see if it can dazzle consumers with the next iteration of its iPhone, expected to be unveiled in September or October. Sure, Apple sold a colossal 35.1 million iPhones in the first three months of this year, but with more high-end, feature-rich Android phones coming to market, it’ll have to pull out all the stops to maintain those kinds of figures.

For real? Apple's now 9-month-old iPhone 4S sold a healthy 26 million (Samsung's model is only 10 million shy (generously adjusting for other iPhone models sold), I'm sure they'll catch up) units this quarter in spite of the fact that many would-be iPhone owners are holding off until the fall launch of the next-gen iPhone. How about we wait and see how the new handset does before we start declaring the latest iPhone-killer, mmmkay?

Possible iPhone Parts Photos Surface

Mark Gurman:

Earlier today we posted the first image of the back plate for the next-generation iPhone, and now we have received several more images that are very high-resolution. These new shots showcase a comparison between the black and white versions of the next-generation iPhone back.

These parts look much more like something Apple would produce than any of the horrid renders that seem to be floating around. Although that off-colour strip of metal across the back is ugly. Apple can't ship that. 

New Look iPhone UI Elements

Killian Bell:

Apple could be gearing up to make some changes in iOS 6 that will introduce a fresh new look to the iPhone. This summer we could be waving goodbye to that traditional iPhone blue that has adorned iOS apps for the past five years and saying hello to sexy silver.

I must say, these look great. The heightened contrast really is awesome. I hope this turns out to be true.

Larger iPhone

Matt Burns posted this piece today. And someone needs to tell the man he's wrong. I'll volunteer (my thoughts in parenthesis):

The Wall Street Journal reported this morning that Apple is currently ordering larger screens for the next iPhone. With the usual nonsense, the WSJ cited people familiar with the matter and stated these screens measure at least 4-inches diagonally. Production is set to begin next month, they say.

(I hope that's not the case. I like my one-hand-operable phone. I'll wait until something is announced, but I don't want a bigger phone.)

The Journal better be right, though. A 3.5-inch screen is just too small now. At this point to say anything to the contrary is pure fanboi (note the delightful and whimsical spelling) nonsense. The standard argument that consumers don’t want a large phone is tired and overused. Besides, it’s effectively proven wrong by the 20 million Galaxy S II phones sold by Samsung last year. It’s time for a larger iPhone.

(Okay… wrong. If you put every phone Samsung made together they still fall short of the iPhone.)

When Apple debuted the iPhone in 2007 it was a revolutionary device. With a novel interface running on a beautiful 3.5-inch screen, the iPhone rocked the mobile scene. But now, over five years later, the iPhone has changed very little. This is a good thing for the most part. Keep with what works. However, the mobile world has since caught up to the iPhone and started moving forward with risky (read: larger) form factors while Apple kept with the tried and true. This is Apple’s Standard Operating Procedure.

(I could jump in here, but I'll allow you to continue this revisionist history nonsense.)

Apple is notorious for keeping products on the market for as long as they’re financially viable. The company’s computers often only get spec bumps twice a year while other makers push the latest hardware every quarter. The Mac Mini once went a full year without an update. But Apple can do this. Consumers often buy Apple products ignoring specs, thus allowing the company to see larger margins on aging devices. Eventually moves need to be made, though.

(So. Much. Wrong. Apple does beat those dead horses, right? Remember the iPod Mini? Killed by the iPod Nano. Best-selling Mac was the white plastic MacBook. Killed, replaced by the McBook Air. And as far "pushing the latest hardware" is concerned… do you seriously live under a rock? Everyone copies Apple's hardware. So, in short; You're wrong. You couldn't be more wrong if your name was Mr. Wrong and you were the mayor of Wrongville.)

The iPhone is still the dominant smartphone on the market. Apple could likely keep selling the iPhone 4S at $200 for the next year and still see iOS’s marketshare increase. Consumers want the iPhone that bad. But it’s starting to show its age and consumers are noticing.

(Consumers want it bad enough to make it the best-selling phone and it's marketshare will inevitably increase… but serious change is needed because those same consumers clamouring to purchase the device are also noticing how out-of-date it is. Uh-huh. Gotcha.)

There is a new report published nearly every other day proclaiming iOS or Android as the dominant platform. But it doesn’t really matter at this point. Both are winning and Android is doing so with large, attention-grabbing screens that consumers clearly want. Of course Apple will always have its base of loyal fanboys no matter what, but the average consumer is swayed by trend — including the trend of large screens.

 (Except for the millions of consumers worldwide YOU previously mentioned that are buying iPhone in droves, right?)

The next iPhone will have a 4-inch screen per the common rumor circulating ’round the Internet. This excites me greatly. My daily driver is a Droid X, which also has 4-inch screen. After playing with nearly every new phone, I still find its 4-inch 16:9 screen the sweet spot between the usability of a small screen and the additional real estate associated with a large screen. Of course there are numerous arguments against Apple employing a larger screen, but a user on The Verge’s forum’s elegantly explained how it could be done. In short, by using a 3.99-inch 9:5 screen, iOS would scale nearly perfectly and add an additional row for icons on the homescreen. It would then be up to Apple’s all-star marketing team to convince the world it’s a 4-inch screen rather than 3.99.

(So let me understand. Your subjective opinion about screen size should be applied to everyone else is the world. Perfect. Also, with regard to 'elegant scaling' It doesn't matter how much or little the screen size changes, developers will still have to update their applications. Which is no small consideration.)

There are no doubt blind Apple zealots absolutely appalled at the thought of a larger iPhone. Ignore ‘em. Change is inevitable. In response to MG’s take on the Evo 4G back in 2010, I wrote “Saying that the EVO 4G’s screen is too big is like saying, “No thanks, I would rather ride in the back of a cab than in your limo. I like feeling cramped and restricted.”” (We both were right about the phone’s horrible battery life, though) That still holds true today. A large screen, if done right, is an amazing feature and one Apple will likely employ in the future.

(I don't know whether or not Apple will change the screen size of the iPhone — I'm in the 'i hope not' camp — but I DID enjoy the way you just declared that anyone who disagrees with you is not just wrong, but is a 'bling Apple zealot'. Fun. And as far as you stupid — yes, stupid — car analogy goes… try this one: You take your limousine and I'll take my Ferrari. Both luxury automobiles, but which is BETTER can certainly be debated.)

Again, to fulfill its goal of purely making money, Apple does not need to change anything about the iPhone. The iPhone 4S sold like gangbusters on the back of just a trivial spec bump and worthless Siri. However, the iPhone 4 form factor is no longer the single most attractive phone on the market. Other mobile phone companies have caught up with Apple. That can’t sit well with The House Jobs Built. Apple needs to regain its street cred and silence the haters, if only for a moment.

(Once again your stance is: Apple's doing everything right, they're selling iPhone like crazy and they're collecting cash with bulldozers, but still… TOTALLY behind the times. Get with it Apple!)

Sometime later this year Apple will introduce the next generation of the iPhone. As proven by previous iPhone rumors, it’s hard to tell what’s on tap. It might have a larger screen and, quite honestly, it might not. The WSJ’s report could be wrong. That said, there will come a time that Apple rolls out a large screen for the iPhone. Hopefully it’s sooner rather than later.

(There WILL come a time. Noted for future reference, Matt.)

Apple as a Cellular Carrier

Ben Brooks on Apple's supposed plan to become their own service provider and bypass carriers entirely:

How about the fact that they would have to build a wireless network and get the spectrum to do that from the FCC? Apple can figure out the phone subsidies, but magically making a cell network infrastructure appear is likely to be much harder.

You're thinking too small, Ben. That's just the US. Apple has iPhone customers all over the globe. 

» Thoughts on the VIrtual Home Button

So I just posted about a [stupid] iPhone concept rendering I saw at Cult of Mac. There's a couple things wrong with the design. I decided that my previous post was too vague I that I ought to elaborate.

The first is that edge-to-edge-to-edge-to-edge screen. When I've got my phone tilted 90 degrees to play a game or something I need that buffer zone between where the screen starts and where the physical phone starts. Do this: hold your phone horizontally and try typing right up against the edge of the screen. It very, very quickly causes muscle strain in your thumbs. I'll bet that when you hold your phone vertically and type with two hands you don't actually hold your phone with two hands. I would wager that you hold your phone with a single hand and cradle that hand with the other providing distance from the body of the phone to allow for comfortable thumb travel across the virtual keyboard.

The second is that (say it with me) stooopid virtual home button. The problem with a virtual home button is that it has to always be there anyway. Why put it on a screen? You can never have that real estate back anyway. People need that home button. They know that no matter what is happening or where they are in the system that button will bring them home. My wife has seen me use the multitasking bar many times (both the double-tap and gesture varieties) but still simply presses the home button goes to where she needs to be and then selects whatever it is she would like to do next. And now that the home button activates Siri it is even more important that the tactile feedback exists so the user can know they've hit their mark.

Count me out for 4-edge displays or for virtual home buttons.

On Phone Choice & Satisfaction

Matthew Panzarino:

The publication also asked people why they chose the phone that they did, and got some interesting results in return. Windows Phone devices were most often picked for their operating system, demonstrating that the Windows name does have adoption power after all. The iOS customers liked the availability of apps and BlackBerry users were unsurprisingly convinced that email ease and a physical keyboard were integral. Android users were split between screen size, operating system and 4G capability being the deciding factors.

I have thought since I first saw it that Windows Phone looks like a really solid choice. Having spent no time with it I am unable to give a reasonable comparison to my iPhone. I suspect the average consumer doesn't care what phone they have. And once they have one they like it. My first iPhone was like magic in my hands. I'd never seen or used anything like it. I'm sure that if my first experience had been with a WP7 phone I would have felt the same way about it.

What is interesting though, is that the #2 reason people chose iPhone rivals or is greater than every reason people chose Android. The #3 reason people chose iPhone meets or exceeds every reason people chose Blackberry. And the #4 reason people chose iPhone destroys all but the number one reason people chose Windows Phone.

 

4-Inch iPhone

Arnold Kim:

There have been persistent rumors that the next generation iPhone would carry a larger 4" screen. And we are convinced that Apple had exactly such designs in late prototype stages in China. The proliferation of iPhone cases with measurements of at least a 4" screen seemed to suggest that a number of suppliers were also convinced of that fact.

I hope this isn't the case. I do not want a bigger iPhone. The one I have is just small enough to fit into the cell-phone pocket in all my jackets. If I need a bigger screen I'll use my iPad.

User-Servicable iProducts

Allyson Kazmucha, on user-servicable iProducts:

I’m convinced that Apple can find a different practice of securing the screen without sacrificing size or thickness and would allow easier access to the internal components.

I'm not weighing in on whether the iPad should or should not be user-servicable, but this statement really gets my back up. What's your proposed solution, Allyson?